eToro Announces Staking For Cardano And Tron | The Paper Source University
eToro has started offering staking services for cardano and tron, and in addition has revealed plans to expand this service to several other digital currencies.
By staking their digital assets through eToro, users of the social trading platform can earn rewards, which will be paid out automatically on a monthly basis.
Further, leveraging this opportunity will allow them to stake these assets in a secure environment and contribute to the validation processes of various blockchain networks.
While the digital currency markets can be highly volatile, staking gives investors a way to generate returns regardless of whether prices rise or fall.
However, staking comes with drawbacks of its own, for example a lockup period during which delegated tokens cannot be sold or otherwise used in transactions.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Investors should keep in mind that several exchanges offer staking services, including Coinbase, Binance and Kraken.
In July, it was announced that Coinbase would give users the ability to stake ada tokens starting in the fourth quarter of this year, according to CoinDesk.
However, at the time of this writing, the Coinbase website did not list any staking services for the ada digital token.
Market participants who are thinking about staking through an exchange should also remember the numerous hacks and service outages that these trading platforms have suffered in the past.
Yoni Assia, founder and CEO of eToro, weighed in on this announcement.
“Staking is an important development in the crypto market but it’s difficult for people to access its benefits on a secure platform, which is what we’re enabling our global community of investors to do by offering this new service.”
“We are proud to be one of the first regulated platforms to offer a staking service for Cardano and will be further expanding our staking service in the coming months,” he added.
Assia specified that eToro is “working on offering future staking rewards on other cryptoassets, including NEO, Tezos, and EOS.”
“We are also working with the Ethereum community to be able to offer staking on ETH2.0 when it moves to proof of stake.”
Justin Sun, founder and CEO of TRON, also shed some light on this announcement.
“We are thrilled that eToro has chosen TRON as one of the first assets to be offered on their new staking service,” he stated.
“As we continue to see diminishing returns from traditional CeFi services, DeFi is continuing to expand,” noted Sun.
Disclosure: I currently serve as VP of Content for financial services firm Quantum Economics, which was founded by former eToro senior market analyst Mati Greenspan.